New trade agreement spurs Mexico’s outlook

Article Excerpt

The successful conclusion of NAFTA renegotiations—and the creation of the new United States-Mexico-Canada Agreement, or USMCA—should boost Mexico’s economic prospects. Combined with lower inflation and a boost to exports from a lower peso, the economy and stock market could be headed for better times. Here is an ETF that provides exposure to the top Mexican publicly listed companies. ISHARES MSCI MEXICO ETF $48.89 (Nasdaq symbol EWW; TSI Network ETF Rating: Aggressive; Market cap: $1.1 billion) tracks the performance of the largest publicly listed Mexican companies. Financial Services account for 17% of its assets, while Telecommunication services (15%), Basic materials (15%), Consumer cyclical (14%), Industrials (11%) and Consumer defensive (10%) are other key segments. The ETF holds a portfolio of 57 stocks; the top 10 holdings make up a high 62% of its assets. They include America Movil (telecommunications, 14.4%), Formento Economico Mexicano (beverage and retail, 9.6%), Grupo Financiero Banorte (financial services, 9.4%) and Wal-Mart de Mexico (retail, 8.0%). The ETF started up in March 2006 and charges…

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